The renting platform Flatfair has been cleared by the Advertising Standards Authority (ASA) that its claims of “Keep your property protected” and “Get up to double the protection of a traditional tenancy deposit” are “not misleading”.
The complaint, which was lodged by competitor Zerodeposit.com, is in relation to a web page entitled “How it works – Landlords” and argues that there was no contractual obligation on flatflair Ltd to provide the protection advertised – and challenged whether the claims “Keep your property protected” and “Get up to double the protection of a traditional tenancy deposit” were “misleading and could be substantiated”.
Flatfair said that while Zerodeposit.com were correct that the legal structure of service provided by flatfair to tenants and landlords did not include a contractual obligation for them to compensate landlords in the necessary circumstances, that did not mean that landlords could not have confidence in the protection afforded by the service.
In its judgement, the ASA said: “We noted that flatfair had agreed to purchase tenants’ debt from landlords, at 100% of the value of the debt (up to a maximum of 12 weeks’ rent), in 100% of cases where an Established Charge had gone unpaid by the tenant for two weeks or more, and the landlord had met the referencing requirements.
“We noted that included a number of cases where the Established Charge was equal to, or greater than, 12 weeks’ rent. We considered that was sufficient to substantiate that flatfair provided “protection” at the level stated in the ad, as landlords were likely to understand it in context.”
It added: “We concluded that the claims “Keep your property protected” and “Get up to double the protection of a traditional tenancy deposit” had been substantiated and were therefore not misleading.”